diff --git a/nova/pci/manager.py b/nova/pci/manager.py
index ff161e38cafb..3e8ed3ee25b3 100644
--- a/nova/pci/manager.py
+++ b/nova/pci/manager.py
@@ -225,6 +225,7 @@ class PciDevTracker(object):
                     self.stale[new_value['address']] = new_value
                 else:
                     existed.update_device(new_value)
+                    self.stats.update_device(existed)
 
         # Track newly discovered devices.
         for dev in [dev for dev in devices if
diff --git a/nova/pci/stats.py b/nova/pci/stats.py
index 40736ef726b2..9f8d24905047 100644
--- a/nova/pci/stats.py
+++ b/nova/pci/stats.py
@@ -97,6 +97,32 @@ class PciDeviceStats(object):
             pool.update(tags)
         return pool
 
+    def _get_pool_with_device_type_mismatch(self, dev):
+        """Check for device type mismatch in the pools for a given device.
+
+        Return (pool, device) if device type does not match or a single None
+        if the device type matches.
+        """
+        for pool in self.pools:
+            for device in pool['devices']:
+                if device.address == dev.address:
+                    if dev.dev_type != pool["dev_type"]:
+                        return pool, device
+                    return None
+
+        return None
+
+    def update_device(self, dev):
+        """Update a device to its matching pool."""
+        pool_device_info = self._get_pool_with_device_type_mismatch(dev)
+        if pool_device_info is None:
+            return
+
+        pool, device = pool_device_info
+        pool['devices'].remove(device)
+        self._decrease_pool_count(self.pools, pool)
+        self.add_device(dev)
+
     def add_device(self, dev):
         """Add a device to its matching pool."""
         dev_pool = self._create_pool_keys_from_dev(dev)
diff --git a/nova/tests/unit/pci/test_stats.py b/nova/tests/unit/pci/test_stats.py
index be867783fb9b..0375ccc63f6d 100644
--- a/nova/tests/unit/pci/test_stats.py
+++ b/nova/tests/unit/pci/test_stats.py
@@ -533,6 +533,30 @@ class PciDeviceStatsWithTagsTestCase(test.NoDBTestCase):
         self.pci_stats.remove_device(dev2)
         self._assertPools()
 
+    def test_update_device(self):
+        # Update device type of one of the device from type-PCI to
+        # type-PF. Verify if the existing pool is updated and a new
+        # pool is created with dev_type type-PF.
+        self._create_pci_devices()
+        dev1 = self.pci_tagged_devices.pop()
+        dev1.dev_type = 'type-PF'
+        self.pci_stats.update_device(dev1)
+        self.assertEqual(3, len(self.pci_stats.pools))
+        self._assertPoolContent(self.pci_stats.pools[0], '1137', '0072',
+                                len(self.pci_untagged_devices))
+        self.assertEqual(self.pci_untagged_devices,
+                         self.pci_stats.pools[0]['devices'])
+        self._assertPoolContent(self.pci_stats.pools[1], '1137', '0071',
+                                len(self.pci_tagged_devices),
+                                physical_network='physnet1')
+        self.assertEqual(self.pci_tagged_devices,
+                         self.pci_stats.pools[1]['devices'])
+        self._assertPoolContent(self.pci_stats.pools[2], '1137', '0071',
+                                1,
+                                physical_network='physnet1')
+        self.assertEqual(dev1,
+                         self.pci_stats.pools[2]['devices'][0])
+
 
 class PciDeviceVFPFStatsTestCase(test.NoDBTestCase):
 
diff --git a/releasenotes/notes/bug-1892361-pci-deivce-type-update-c407a66fd37f6405.yaml b/releasenotes/notes/bug-1892361-pci-deivce-type-update-c407a66fd37f6405.yaml
new file mode 100644
index 000000000000..ba35c25b02de
--- /dev/null
+++ b/releasenotes/notes/bug-1892361-pci-deivce-type-update-c407a66fd37f6405.yaml
@@ -0,0 +1,12 @@
+---
+fixes:
+  - |
+    Fixes `bug 1892361`_ in which the pci stat pools are not updated when an
+    existing device is enabled with SRIOV capability. Restart of nova-compute
+    service updates the pci device type from type-PCI to type-PF but the pools
+    still maintain the device type as type-PCI. And so the PF is considered for
+    allocation to instance that requests vnic_type=direct. With this fix, the
+    pci device type updates are detected and the pci stat pools are updated
+    properly.
+
+    .. _bug 1892361: https://bugs.launchpad.net/nova/+bug/1892361